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water heater

You need to check with your local code official. Here in Ohio we dont have to pipe them to the exterior of the home. Where my mom and sister live they are ALL piped out of the home. Personally I think this is ridiculous. If the damn thing starts leaking how are you going to know if its piped outside. Just my opinion

BTW, that is not an overflow drain. That is a temperature and pressure relief valve which is an EXTREMELY important safety device that keeps your water heater from turning into a missile.